Module 4:

Construction
Estimates
by
Rolls Grant Vasquez ,CE
CEM 302 – CE31S1
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 Cost of Construction Facility
The cost of construction facility to the owner include:
• Initial capital cost
• Operation and maintenance cost

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 Cost of Construction Facility
Initial Capital Cost
• Land acquisition
• Planning and feasibility studies
• Architectural and engineering design
• Construction, including materials, equipment and
labor
• Field supervision of construction
• Construction financing
• Insurance and taxes during construction
• Owner’s general office overhead
• Equipment and furnishing of facility
• Inspection and testing
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 Cost of Construction Facility
Operation and Maintenance Cost
• Land rent
• Operating staff
• Labor and materials for maintenance and repair
• Periodic renovations
• Insurance and taxes
• Financing cost
• Utilities
• Owner’s other expenses

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 Cost Estimation
Cost Engineering – area of engineering practice where
engineering judgment and experience are utilized in
the application of scientific principles and techniques
to the problem of cost estimation, control and
profitability

Cost Estimate – establishes the baseline of the project

at different stages of development of the project

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 Cost Estimation
Cost Estimation – one of the most important steps in
project management
– a complex process of collecting
available and pertinent information about project
scope, expected resource consumption, and future
changes in resource cost

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 Cost Estimation
Process of Cost Estimation

Conversion of information
to forecast cost of facility
Synthesis of information through visualization of
the construction process

Collection and review of detailed plans, specs, site data,

resource data (labor, materials, equipment), contract
documents, gov’t regulations

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 Cost Estimation
Qualifications of cost estimator

• Extensive knowledge of construction

• Knowledge of construction materials & method
• Knowledge of construction practices & contracts
• Ability to read & write construction documents
• Ability to sketch construction details
• Graphic & verbal communication
• Strong background in business & economics
• Ability to visualize work items
• Broad background in design & code requirements

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 Cost Estimation
Types of Cost Estimate (general)

1. Conceptual or approximate estimate

2. Detailed estimate

Classification is dependent on:

• available information
• extent of effort

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 Cost Estimation
Conceptual estimate
• Used at the outset of the project when scope are in
early stages of development
• Used to assess potential cost to determine
economic desirability

Quick techniques usually employed:

• Utilize one project parameter such as floor area,
length (roads & bridges), or output (barrels per day)
• Use historical cost information

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 Cost Estimation
Detailed estimate
• Estimates that are prepared after scope of works of
project are clearly defined
• Requires effort in gathering information and
forecasting cost
• Prepared for bid purposes or definitive budgeting
• Fairly accurate projections of construction costs
• Used for decision making and commitment

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 Cost Estimation
Types of Cost Estimate (function)

1. Design Estimate
2. Bid Estimate
3. Control Estimate

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 Cost Estimation
1. Design Estimate – used by the owner or design
professional during the planning and design stage

o Screening estimate – used before design and thus rely

cost data of similar facilities built in the past
o Preliminary estimate – based on the conceptual
design of the facility
o Detailed estimate – made when the scope of works is
clearly defined and essential features of facility are
known
o Engineer’s estimate – based on completed plans and
specifications and used by the owner to solicit bids
from contractors

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 Cost Estimation
2. Bid Estimate – used by the contractor for submission
to the owner either for bidding or negotiation
– consists of direct construction cost,
job site and general overhead and profit margin,
and may be derived from:
o Subcontractor quotation – basis of cost estimate for
tasks that are subcontracted by the gencon
o Quantity takeoffs – estimate of materials and labor for
tasks that will be performed by the gencon based on
plans provided by owner
o Construction procedures – assess the actual cost of
construction considering actual procedure to be
used if the project is different from typical design

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 Cost Estimation
3. Control Estimate – used by the owner for planning
long term finances
– used by the contractor for
monitoring expenses during construction

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 Methods of Cost Estimation
1. Simple Unit Cost
෍ 𝑢𝑖 𝑄𝑖

𝑢𝑖 - unit cost of element i

𝑄𝑖 - quantity of element i

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 Methods of Cost Estimation
1. Simple Unit Cost
4.1 Foundation Structures (FTB / Column Footing)

4.1.1 Concrete 4,084.43 cu.m. 2,672.37 10,915,108.20

4.1.2 Rebars 628,406.38 kgs. 5.50 3,456,235.09

4.1.3 Formworks 8,864.99 sq.m 272.77 2,418,103.32

4.2 Slab-on-Grade

4.2.1 Concrete 4,111.50 cu.m. 2,856.37 11,743,965.26

4.2.2 Rebars 167,862.30 kgs. 5.50 923,242.65

4.2.3 Formworks 353.63 sq.m 272.77 96,459.66

4.2.4 Damproofing (6 mil polyethylene) 28,131.30 sq.m 65.04 1,829,659.75

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 Methods of Cost Estimation
2. Labor, Material & Equipment Cost
෍ 𝑄𝑖 𝑀𝑖 + 𝐸𝑖 + 𝑊𝑖 𝐿𝑖

𝑄𝑖 - quantity of element i
𝑀𝑖 - unit cost of material for task i
𝐸𝑖 - unit equipment rate for task i
𝑊𝑖 - wage rate
𝐿𝑖 - labor required per unit of task i

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 Methods of Cost Estimation
2. Labor, Material & Equipment Cost
Unit Rate Amount Total
PAY ITEM DESCRIPTION Quantity Unit
Materials Labor Materials Labor Amount

Excavation
Concrete cutting and demolition 780.0 l.m. - 100.00 - 78,000.00 78,000.00
Earth excavation 1025.0 cu.m. - 600.00 - 615,000.00 615,000.00

Pipe Laying & Restoration

Sand bedding 205.0 cu.m. 3,000.00 200.00 615,000.00 41,000.00 656,000.00
4" PVC Electrical Pipe "thick wall" 690.0 pc 450.00 80.00 310,500.00 55,200.00 365,700.00
1-1/2" PCV electrical pipe "thin wall" 1380.0 pc 170.00 50.00 234,600.00 69,000.00 303,600.00
Concrete saddle for pipe
Sand 5.0 cu.m. 3,000.00 1,050.00 15,000.00 5,250.00 20,250.00
Gravel 10.0 cu.m. 3,000.00 1,050.00 30,000.00 10,500.00 40,500.00
Cement 120.0 bags 330.00 115.50 39,600.00 13,860.00 53,460.00
Plain sheet gauge #18 for casting mold (4ft x 8ft) 1.0 pc 1,400.00 400.00 1,400.00 400.00 1,800.00

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 Methods of Cost Estimation
3. Allocation of Joint Cost
o Proration of joint cost to various elements of the
project in proportion to element’s cost
o Joint costs are indirect costs which cannot be
directly charged to an activity
• field supervision
• field office cost
• general operating overhead

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 Methods of Cost Estimation
4. Estimate Based on Engineer’s List of Quantities
o Based on a list of items and associated quantities
from which the total construction cost is derived
o List is made available to bidders and unit prices
are solicited from each bidder

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 Methods of Cost Estimation
4. Estimate Based on Engineer’s List of Quantities
A General Requirement
1. Mobilization / Demobilization 1 lot 0
2. CARI / Insurance 1 lot 0
3. Clearing / Hauling of Debris 1 lot 0
4. VAT / Taxes 1 lot 0

B CEILING WORKS
1. Supply / Installation of 12mm thk Plain Gypsum Board/
Echo Stop Board / Aluminum Composite Ceiling on
standard metal frames , hanger, including metal reveal ,
corner beads . Painted finish
a. Plain Gypsum Low Ceiling sq.m. 0
b. Plain Gypsum High Ceiling sq.m. 0
c. Echo Stop Low Ceiling sq.m. 0
d. Echo Stop High Ceiling sq.m. 0
e. Aluminum Composite sq.m. 0
f. Plain Gypsum Canal l. m. 0
h. Covelight l. m. 0
i. Barrel Vault l. m. 0
e. Toilet (Moisture Resistant) sq.m. 0
2. Installation of Owner supplied Ceiling Manholes 60 pc 0 22
 Methods of Cost Estimation
1. Simple Unit Cost
2. Labor, Materials and Equipment Cost
3. Allocation of Joint Cost
4. Estimate Based on Engineer’s List of Quantities

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 Sample Problem
1. Conceptual Estimate
A residential condominium is to be constructed
with a total gross floor area of 77,384 m2. Parking space
is estimated to be 10% of the total gross floor area.
Estimate the projected budget with the following
historical data:

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 Sample Problem
1. Conceptual Estimate

Previous condominium project

Total project cost: P 1,093,252,400

Building structure cost: P 482,996,154
Architectural & MEPF cost (residential floors):
P 527,600,000
Architectural & MEPF cost (parking floors) P 82,656,246

Parking floor area: 10,954 m2

Residential floor area: 62,570 m2
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 Detailed Estimate
Determining elements of cost

o Labor
o Materials
o Equipment

Objective of estimator is to identify specific types of

resources to be used, quantity of resource and the cost
of resource

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 Detailed Estimate
Labor Resource
• Refers to various human craft or skill resources that
actually build the project

• Cost of labor:
a) Identify skill to be used & determine hourly cost –
wage rate
b) Estimate rate of work – labor productivity
c) Divide labor rate by productivity to determine
labor cost per physical unit of work

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 Detailed Estimate
Labor Resource

• Labor rate – total hourly expense for a particular

craft or task
– expressed in pesos per hour (pesos/hr)

• Labor productivity – output per unit of labor input

– expressed in output per unit time
(e.g. m3/day)

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 Detailed Estimate
Labor Productivity (industry estimate)
Activity Productivity
Concreting of flooring (plain, w/o reinf.) 2 men pour 1.2 m3 per
day
Concreting of flooring, w/ reinforcement 2 men pour 0.84 m3
per day
Concreting (columns/beams) 2 men pour 0.50 m3
per day
Floor finishing 36 m2 per day
Finishing of CHB joints (tooled joint) 210 pcs CHB per day
Plastering of CHB 4 m2 per day
Laying of CHB 50 pcs CHB per day

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 Sample Problem
2. Detailed Estimate (Labor)
Two masons and one labor can install 415
pieces of hollow blocks 400x200x150mm (LxWxH) in one
day (8 hours). Determine the unit labor cost for 1 m2 of
hollow blocks installation. The wage rate is P 68/hr for
mason and P 52/hr for labor.

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 Detailed Estimate
Equipment Cost
• Equipment may either be purchased or leased

• Equipment selection criteria:

o Functional performance – capacity & speed
o Project flexibility – multiple uses
o Companywide operations – equipment can be
used in other projects
o Economics – production or hourly cost

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 Detailed Estimate
Equipment Cost
• Equipment economics include:
o Production rates – output per unit time
o Equipment cost – includes direct and indirect
equipment cost
• Direct cost – cost of ownership and operation
of equipment
• Indirect cost – costs that occur in support of
the overall fleet of the equipment but cannot
be specifically assigned to a particular
equipment

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 Detailed Estimate
Capabilities of Equipment (industry estimate)

Equipment Type of work Capability

Dozer a. Clearing 500 m2/hr
b. Stripping 200 m2/hr
c. Excavation 25 m3/hr
d. Quarrying 50 m3/hr
e. Pushing 3 m2/hr
Payloader Loading 30 m3/hr
Vibratory roller Rolling (4 passes 135 m3/hr
(2-drum) – 15cm lift)

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 Sample Problem
3. Detailed Estimate (Equipment)
Determine the cost effectiveness of selecting
an equipment over manual labor for excavation with
the following data:
Back hoe: Manual labor:
Rental – P 2,000/day* Productivity – 0.41 m3/hr
Operator wage – P 100/hr Wage rate – P 55/hr
Productivity – 3.5 m3/hr

*minimum 4 hours, maximum 14 hours

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 Detailed Estimate
Materials Estimate
• Estimator must be able to read & interpret drawings
& specs to develop a complete list of materials
required

• Estimator identifies the cost of materials including

purchase price, shipping, handling & taxes.

• Refer to Simplified Construction Estimates by Max

Fajardo

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 Detailed Estimate
Unit of Measure
• Measurements are simplified to reduce the
probability of committing error when several digits
are being used.

• 1 inch = 25.4 mm “accurate value”

• 1 inch = 25 mm “approximate value”

• 1 foot = 0.3048 m “accurate value”

• 1 foot = 0.30 m “approximate value”

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 Detailed Estimate
Estimating Concrete

• Establish first the desired mix/proportion:

Mixture Proportion Cement (in bags) Sand Gravel

Class 40 kg 50 kg (m3) (m3)
AA 1 : 1.5 : 3 12 9.5 0.5 1.0
A 1:2:4 9 7 0.5 1.0
B 1 : 2.5 : 5 7.5 6 0.5 1.0
C 1:3:6 6 5 0.5 1.0

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 Detailed Estimate
Estimating Concrete

• Designed Mix – contractor is responsible in

establishing the mix that will achieve required
strength and workability as specified in the plan

• Prescribed Mix – the design engineer specifies the

mix proportion. Contractor’s responsibility is to
provide a properly mixed concrete containing the
right proportion as prescribed in the plan.

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 Detailed Estimate
Estimating Concrete
• Concrete estimate by Floor Area
o categorized as conceptual estimate
o given a floor area, one can generally have an
idea of the total volume of concrete of the
structure

o V = GFA x (0.175m to 0.20m)

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 Detailed Estimate
Estimating Concrete
• Concrete estimate by Volume Method
o all concrete structures are estimated using its
volume
o know the dimension of the structure by referring
to the plan
o neglect the volume occupied by the
reinforcement

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 Sample Problem
4. Detailed Estimate (Concrete)
A concrete road 15 meters wide, 5 kilometers
long, is designed with a thickness as shown in the
following cross-section. Determine the quantity of
materials required if the plan specified a Class A
concrete.
6”
6”
6” 8”

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 Detailed Estimate
Estimating Masonry
• Standard concrete hollow block (CHB) has three
void cells and two half cells, making it four void cells

• Concrete hollow block (CHB) has standard

dimensions of 400mm length (16”) and 200mm
height (8”). Thickness varies according to use,
typically 75mm to 200mm (3” to 8”)
H
T

L
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 Detailed Estimate
Estimating Masonry
• We want to know quantity of materials for a certain
masonry work made of CHB, which generally
comprises the following:
o CHB
o Cement and sand (mortar) for block laying
o Cement, sand and gravel for filling hollow cores and
pouring stiffener columns and beams
o Reinforcing steel bars
o Tie wires

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 Detailed Estimate
Estimating Masonry

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 Detailed Estimate
Estimating Masonry

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 Detailed Estimate
Estimating Masonry

• Masonry is estimated using area method.

• 1 m2 = 12.5 pcs CHB
• Estimate volume of filler to be used

L – 4”
T – 2” 4

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 Detailed Estimate
Estimating Masonry

• Quantity of Cement and Sand for mortar and

plaster
Mixture Proportion Cement (in bags) Sand
Class 40 kg 50 kg (m3)
A 1:2 18 14.5 1.0
B 1:3 12 9.5 1.0
C 1:4 9 7 1.0
D 1:5 7.5 6 1.0

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 Detailed Estimate
Estimating Masonry

• Hundred Block Method (for filler)

• Quantity of Cement and Sand per 100 Blocks

Size of Cement in Bags 40 kg Sand

CHB A B C D (m3)
4” 6.336 4.176 3.152 2.624 0.348
6” 12.150 8.104 6.072 5.064 0.675
8” 18.072 12.000 9.000 7.504 1.000

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 Detailed Estimate
Estimating Masonry

• Quantity for plastering depends on the area (area

method) and thickness of plaster

• Thickness of plaster = quantity of sand per square

meter
• Follow mix proportion table for mortar & plaster to
get quantity of cement

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 Sample Problem
5. Detailed Estimate (Masonry)

Find the total quantity of materials for masonry for the

figure shown

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 Sample Problem
From the following figure, prepare the bill of materials
using class “B” mixture for concrete and mortar.
25.00 M 0.2 M

0.2 M
10 cm. CHB
25.00 M

3M 2.5 M
GROUND

0.1 M
0.15 M 0.40 M
0.60 M
5.00 M
POST CHB
PLAN
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